The Impact of Approved Destination Status on Chinese Travel Abroad: An Economic Analysis

Shawn Arita, Christopher Edmonds, Sumner La Croix and James Mak
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Shawn Arita: Department of Economics, University of Hawaii at Manoa
James Mak: Department of Economics, University of Hawaii at Manoa

No 200918, Working Papers from University of Hawaii at Manoa, Department of Economics

Abstract: Since the early 1990s China’s government has negotiated Approved Destination Status (ADS) with 120 countries. The agreements allow government-approved travel agencies to market group tours and obtain visas in bulk to ADS destinations. We apply a gravity model framework to analyze how ADS has affected Chinese outbound tourist travel from China using Chinese visitor arrivals data from 61 main foreign destinations of mainland Chinese tourists (which account for vast majority of international departures from China) from 1995 to 2005. Fixed effects estimates indicate ADS resulted in significant increases in arrivals from China (averaging 52 percent over three years). We also find evidence of travel diversion as more countries received ADS.

Keywords: China Outbound Travel; Approved Destination Status; Gravity Model; Tourism; International Agreements; Travel Liberalization (search for similar items in EconPapers)
Pages: 34 pages
Date: 2009-11-10
New Economics Papers: this item is included in nep-int and nep-tur
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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